Greek debt
April 13, 2010
Greece has passed its first borrowing test since the offer of a bail-out package from the euro zone was approved on Sunday.
The struggling Mediterranean nation successfully sold short-term debt on the international monetary market on Tuesday, but was forced to offer high interest rates, dampening hopes that it can weather the crisis alone.
"Today's successful Greek short-term debt auctions will further ease fears about meeting its near-term financing needs, but it still faces an uphill struggle to return the public finances to a sustainable position," said Ben May, an analyst at Capital Economics, according to Reuters news agency.
Athens has not yet enacted the aid package, which includes an extra 10-15 billion euros ($13-20 billion) from the International Monetary Fund (IMF), although it remains an option. The assistance package was opposed by Germany.
Future uncertain
Finance Minister George Papaconstantinou said Athens stay with its original plan of appealing to external markets.
"We are sticking to our target and I believe we will continue to borrow from markets smoothly, as we did today with the T-bills," Papaconstantinou told parliament.
smh/Reuters/ AFP
Editor: Chuck Penfold